National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the bond value of each bond after 5 years?
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National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the
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- An analyst observes a 10- year, 10% semi annual-pay bond. The face amount is £1,000. The analyst believes that the yield to maturity for this bond should be 15% based on this yield estimate, what would be the amount ? what is the method to solve this equation and the solution? Thank you.You want to form a bond portfolio that pays $100 every six months, for the next year. That is, $100 in 0.5 years and $100 in 1 year. To achieve this goal, you will purchase Bonds A and B, which have a face value of $100 and pay semi-annual coupons. The following information is available: Bond A • Coupon rate (APR): 4.3% Maturity: 1 year Bond B • Coupon rate (APR): 9.5% • Maturity: 1 year Calculate the number of units you must buy of Bond B to achieve your goal. Express your answer as a number with two decimals. E.g. If your answer is 102.544, then enter it as 102.54Assume that the issue will have a coupon rate of 5% with a 15 year maturity. Assume this are semi-annual coupon bonds and each have a face value of $1,000 and the required rates of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds?
- Ruby corporation is planning to buy bond that matures in 10 years. The annual coupon payment is at the rate of 3.5% and has a par value of RM1,000. Assume that the expected rate of return is 5%, calculate the bond valueHuion Inc. bonds will mature in 10 years. The bonds have a face value of $1,000 and an 5% coupon rate, paid semiannually. The price of the bonds is $1,000.The bonds are callable in 4 years at a call price of $1100. What is their yield to maturity? What is their yield to call? Please show work and explain.National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity of 10 years. The said portfolio will hold 4 Bulldogs bonds with a total par value of P8,000. These bonds pay 5% annual coupon. The appropriate discount rate is determined at 6%. What is the bond value of each bond after 5 years? Note: No rounding off present value factors. No rounding off until final answer. Format: XX.XX
- An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L. a. What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 4%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 9%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 9%? Round your answer to the nearest cent. $ tA What will the value of the Bond L be if the going interest rate is 14%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 14%? Round your answer to the nearest cent. $ b. Why does the…The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. 1. How much should you pay for a $1,000 ARA Corporation bond? Use the bond equation formula.Answer the following situation show your Complete Solution. Show the formulas. a. A bond with face value of Php 1,000 is selling at Php 950. The maturity of the bond is one year. How much is its gain ? b. A bond with Php5,000 face value pays 10% coupon rate semi - annually . If the maturity of the bond is 2 years , how much is the coupon paid semi - annually ? Find the total coupon during the life of the bond . Answers ( I already provided the answers just please show the solutions with correct formulas THANK YOU): a. Php 50 is the amount of gain. b. Php 500 is the among of semi-annual coupon. Php 2 000 is the total coupon since there are 4 periods in two years.
- An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 6% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent.Apple wants to issue bonds with $1,000 face value and 10 years to maturity. The bonds would pay coupons semi-annually. The coupon rate is 4%. The market price of the bonds is $1,070.45. What is the yield to maturity on the bonds?As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years, the coupon rate is 6% paid annually, and the market yield (discount rate) is 13%. What should be the estimated value of this bond in one year?